DCG chief Barry Silbert pens letter to shareholders, community reacts
The crypto community woke up to another drama-filled day after the Digital Currency Group (DCG) chief's reflection went wrong. DCG chief Barry Silbert penned a letter to the shareholders on Jan. 10, reflecting on the state of the crypto market and the growing FUD around the company. DCG is the parent company of Genesis Global Capital, a crypto lending firm and Grayscale, the world’s leading crypto asset manager.
In the letter, Silbert addressed the growing issues around DCG and its subsidiaries owing to the bear market and FTX contagion. He said that bad actors and the implosion of leading crypto companies have wreaked havoc on the industry and noted that “DCG and many of our portfolio companies are not immune to the effects of the present turmoil.”
I’m incredibly proud of the role that DCG & I have played as pioneers & builders over the past decade. We’ve invested in >200 companies that have developed & shaped the industry, we’ve helped build the first publicly-quoted BTC fund, the largest asset manager in the space..(2/10)
In the latter half of the letter, Silbert addressed some of the raging questions around its relationship with FTX, the loan agreement with Genesis and more. He said that aid Genesis had a "trading and lending relationship" with Three Arrows and had invested $250,000 in FTX’s Series B funding round in July 2021. DCG also borrowed $500 million in USD between January and May 2022 at interest rates of 10%-12%.and currently owes Genesis Capital $447.5 million in USD and 4,550 Bitcoin (BTC) worth $78 million which matures in May 2023.
Related: It'll be OK: DCG crisis likely won’t ‘include a lot of selling’ — Novogratz
However, what puzzled the crypto community more was the fact that Silbert avoided addressing
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